BMI View: Brazil offers substantial long-term rewards to food and drink companies due to its sheer market size and youthful consumer base. Price consciousness will prevail over the short term, however, as the country's economic recovery is still in its infancy and political uncertainty ahead of the 2018 General Election means consumer confidence remains fragile. We highlight strong growth opportunities in discount/ cash-and-carry formats as a result, as consumers continue to shift away from traditional grocery markets. We expect spending on premium food and drink products to gradually recover over the back end of our forecast period to 2021, in line with the wider economy.